BUS 604 week 3 discussion

Author's Name

Institutional Affiliation

Date

Week 3 discussion With Peer Responses:

After you have successfully reserved the key term that interests you the most, research a

minimum of 5 recent scholarly articles that relate to the concept on which you wish to focus

your research. Articles must be found in reputable professional and/or scholarly journals

and/or informational venues that deal with the content of the course (i.e., not blogs,

Wikipedia, newspapers, etc.). After reading the articles, select the 1 article that you wish to

discuss.

Your thread must be placed in the Discussion Board Forum textbox (not as an attachment)

and adhere precisely to the following headings and format:



1.Key Termand Why You Are Interested in It (100 words minimum)

Afterreadingthetextbook,specificallystatewhyyouareinterestedinconducting

furtherresearchonthiskeyterm(e.g.,academiccuriosity,applicationtoacurrentissue

relatedtoemployment,oranyotherprofessionalrationale).Includeasubstantive

reason,notsimplyaphrase.



2.Explanation of the Key Term(100 words minimum)

Provideaclearandconciseoverviewoftheessentialsrelevanttounderstandingthiskey

term.



3.Major Article Summary(300 words minimum)

Usingyourownwords,provideaclearandconcisesummaryofthearticle,includingthe

majorpointsandconclusions.



4.Discussion

Inyourownwords,discusseachofthefollowingpoints:

a.HowthecitedworkrelatestoyouraboveexplanationANDhowitrelates

specificallytothecontentoftheassignedmodule/week.Thispartofyourthread

providesevidencethatyouhaveextendedyourunderstandingofthiskeyterm

beyondthetextbookreadings.(150 words minimum)

b.Howthecitedworkrelatestotheother4worksyouresearched.Thispartof

yourthreadprovidesevidencethatyouhaverefinedyourresearchkeytermtoa

coherentandspecializedaspectofthekeyterm,ratherthanarandomselection

ofworksonthekeyterm.Theideahereistoprovethatyouhavefocusedyour

researchandthatallworkscitedarerelatedinsomemannertoeachother

ratherthansimplyacollectionofthefirst5resultsfromyourInternet

search.(150 words minimum)



5.References

Aminimumof5recentscholarlyarticles(nottextbooks,Wikipedia,orotherpopular

readingmagazines),incurrentAPAformat,mustbeincludedandmustcontain

persistentlinkssoothersmayhaveinstantaccess.Intheeventthatformattingislostor

corruptedwhensubmittingthethread,attachtheMicrosoftWorddocumenttoyour

threadasevidencethatyourworkwascompletedintheproperformat.Accessthe

followingURLfromtheJerryFalwellLibraryforinstructionsoncreatingpersistent

links:HowtoCreateaPersistentLink.

Key Term and Why You Are Interested in It

The term chosen for this project is Gross Domestic Product (GDP). The primary reason

for GDP is that it is an important indicator of a country's economic performance. GDP is

important because it gives information about the size of the economy and how an economy is

performing. I chose the term to gain a better understanding of ways of determining the

economy's general health. Knowledge about the GDP will be essential in my academic journey,

especially in my post-graduate studies. A more in-depth understanding of GDP also satisfies my

curiosity about how the economy operates. The other reason why I am concerned about GDP is

that it affects my life as a citizen. GDP is tied to other economic issues that influence my daily

life such as employment rates, investment, salaries and wages among others.

Key Points on Economic Development Incentives:

Job Creation: Economic development incentives are often employed by local governments and

states to attract businesses and industries to their regions. One of the primary objectives is to

create job opportunities for local residents. When a business chooses to establish or expand its

operations in a particular area, it typically hires from the local workforce, contributing to a

reduction in unemployment rates.

Local Economic Growth: Attracting businesses through incentives can stimulate economic

growth at the local level. These businesses bring in investments, infrastructure development, and

increased economic activity, which can have a ripple effect on other sectors of the economy. As

businesses grow, they often source goods and services locally, further benefiting the community.

Competitiveness: Economic development incentives enhance the competitiveness of regions in

attracting businesses. When local governments offer incentives such as tax breaks, grants, or

favorable regulatory conditions, it can make the area more appealing to companies looking for a

new location. This competition among regions can lead to more favorable terms for businesses.

Innovation and Global Competition: Incentives can play a role in boosting innovation,

particularly in sectors that are vital for global competitiveness. For example, regions may offer

incentives to attract technology companies or research institutions, fostering innovation and

driving economic growth.

Balancing Development: Economic development incentives can be used strategically to balance

development across regions. They can help revitalize economically distressed areas, promote

urban renewal, and reduce regional disparities in economic opportunities.

Long-term Impact: While economic development incentives can provide short-term benefits, it's

important for policymakers to consider the long-term impact and sustainability of these

incentives. Ensuring that the incentives lead to lasting economic growth and benefits for the

community is essential.

Challenges and Considerations:

Cost-Benefit Analysis: It's crucial to conduct a thorough cost-benefit analysis of economic

development incentives. Governments should assess whether the benefits, such as job creation

and increased tax revenue, outweigh the costs, including the financial incentives offered to

businesses.

Transparency: Transparency in the process of awarding incentives is essential to maintain public

trust. Communities should have access to information about the incentives provided, the

companies receiving them, and the expected outcomes.

Accountability: Policymakers must establish mechanisms to hold businesses accountable for

delivering on their promises, such as job creation and investment commitments, in exchange for

incentives.

Impact on Public Services: Increasing economic activity can strain public services, such as

transportation, education, and healthcare. Policymakers should plan for the potential impacts on

these services when attracting new businesses.

Fairness: Ensuring that incentives are distributed fairly and equitably among businesses and

communities is a consideration. Avoiding favoritism and ensuring that all eligible businesses

have equal access to incentives is important.

In conclusion, economic development incentives can be a valuable tool for spurring job creation,

fostering economic growth, and enhancing competitiveness. However, their effectiveness

depends on careful planning, transparency, accountability, and a long-term perspective. When

employed strategically and responsibly, economic development incentives can contribute

significantly to local and regional prosperity.

Types of Economic Development Incentives:

Tax Incentives: Tax incentives are among the most common forms of incentives offered to

businesses. These can include tax breaks, credits, and abatements, which reduce a company's tax

burden. For example, a state or municipality might offer a property tax abatement for a certain

number of years to attract a new manufacturing plant.

Financial Assistance: Financial incentives may involve grants, loans, or subsidies provided to

businesses to support their expansion or relocation efforts. These funds can help cover costs such

as facility construction, infrastructure development, or workforce training.

Regulatory Incentives: Some regions offer streamlined regulatory processes or exemptions from

certain regulations to make it easier for businesses to establish operations. For example, a

streamlined permitting process can expedite the construction of a new facility.

Infrastructure Investment: Local governments may invest in infrastructure projects, such as

building or improving roads, utilities, and transportation networks, to attract businesses. These

investments can enhance the overall attractiveness of an area for development.

Workforce Development: Initiatives to develop and enhance the local workforce, such as job

training programs or partnerships with educational institutions, can be incentives for companies

looking for skilled labor.

Benefits of Economic Development Incentives:

Job Creation: One of the primary benefits is job creation. When businesses receive incentives to

expand or establish operations in an area, they typically hire local residents, reducing

unemployment rates and boosting household incomes.

Increased Tax Revenue: Economic growth generated by new businesses can lead to increased tax

revenues for local governments. This additional revenue can be used to fund public services and

infrastructure improvements.

Diversification of the Economy: Incentives can attract businesses in various industries, leading to

economic diversification. This can make a region less reliant on a single industry and more

resilient to economic downturns.

Improved Quality of Life: Investments in infrastructure and community development often

accompany economic development. These improvements can enhance the quality of life for

residents, making the area more attractive for both businesses and individuals.

Innovation and Research: Incentives can stimulate innovation and research, particularly in

technology-intensive sectors. For example, offering research grants to universities or technology

firms can foster innovation hubs.

Considerations and Challenges:

Return on Investment (ROI): Evaluating the ROI of economic development incentives is crucial.

Governments must assess whether the benefits generated, such as increased tax revenue,

outweigh the costs of providing incentives.

Sustainability: Sustainable economic growth should be a primary goal. Policymakers should

consider the long-term impact of incentives and whether they lead to lasting economic benefits.

Competition and Equity: Competition among regions to attract businesses can lead to a race to

the bottom, where governments offer increasingly generous incentives. Striking a balance

between competitiveness and fiscal responsibility is challenging.

Accountability and Transparency: Establishing mechanisms for monitoring and ensuring that

businesses fulfill their commitments, such as job creation targets, is vital. Transparency in the

incentive awarding process is also essential to maintain public trust.

Community Impact: Policymakers should consider the potential impact on local communities,

including potential gentrification, displacement, and changes in the cost of living.

In summary, economic development incentives can be powerful tools for promoting economic

growth and job creation. However, they require careful planning, evaluation, and responsible

governance to ensure that they benefit both businesses and the communities in which they

operate. Striking the right balance between competitiveness and fiscal responsibility is a key

challenge for policymakers.

Targeted vs. Broad-Based Incentives:

Targeted Incentives: Some economic development incentives are designed to target specific

industries or sectors that align with a region's economic development goals. For example, a

region may offer incentives to attract technology startups or green energy companies to promote

innovation and sustainability.

Broad-Based Incentives: In contrast, broad-based incentives are available to a wide range of

businesses without a specific industry focus. These incentives are often used to attract a diverse

array of businesses and create a balanced local economy.

Measuring the Effectiveness of Incentives:

Cost-Effectiveness Analysis: Governments often conduct cost-effectiveness analyses to assess

whether the incentives provided yield the desired outcomes. This analysis compares the costs of

the incentives to the economic benefits generated, such as job creation and increased tax revenue.

Job Quality Considerations: It's important to consider not only the number of jobs created but

also the quality of those jobs. Are they well-paying, stable, and offering benefits? Ensuring that

incentives lead to quality employment opportunities is a key consideration.

Sustainable Development Goals (SDGs):

Alignment with SDGs: Economic development incentives can be designed to align with the

United Nations' Sustainable Development Goals (SDGs). For example, incentives may

encourage businesses to adopt environmentally sustainable practices, promote gender equality in

hiring, or support poverty reduction initiatives.

Public-Private Partnerships:

Collaborative Approaches: Many regions are adopting public-private partnership (PPP) models

to attract businesses. These partnerships involve collaboration between government entities and

private businesses to jointly fund and develop infrastructure, innovation hubs, or other economic

development initiatives.

Rural Economic Development:

Rural Areas: Economic development incentives are not limited to urban areas. Rural regions

often use incentives to attract businesses, revitalize local economies, and prevent population

decline.

Telecommuting and Remote Work: Incentives can also be geared toward remote work

opportunities in rural areas. These incentives support the creation of coworking spaces,

broadband infrastructure, and digital skills training to attract remote workers and telecommuters.

Innovation Clusters and Ecosystems:

Innovation Districts: Some regions create innovation districts or clusters, often in collaboration

with universities and research institutions. Incentives may include research grants, access to

shared facilities, and tax incentives to foster innovation and technology transfer.

Global Competition:

International Investment: Nations and regions often compete globally to attract foreign direct

investment (FDI). Incentives play a crucial role in this competition, with countries offering tax

incentives, free trade zones, and other benefits to multinational corporations.

Trade Agreements: Bilateral and multilateral trade agreements can influence the types of

incentives that are offered to foreign businesses. These agreements can shape the terms and

conditions of foreign investment.

Monitoring and Adaptation:

Continuous Monitoring: Effective economic development requires continuous monitoring of the

business environment and economic trends. Policymakers must adapt incentives to changing

circumstances to ensure their relevance and effectiveness.

Feedback Loops: Establishing feedback loops with businesses and the local community can

provide valuable insights for refining incentive programs and addressing issues as they arise.

In conclusion, economic development incentives are dynamic tools that can be tailored to

achieve specific economic, social, and environmental goals. Their effectiveness hinges on

thoughtful design, rigorous evaluation, and a commitment to balancing the interests of

businesses, communities, and the broader economy. As economic landscapes evolve, so too must

the strategies and incentives used to foster growth and development.

Explanation of the Key Term

GDP refers final value of the total goods and services produced within the geographic

boundaries of a country in a year. The computation of GDP encompasses four major

components, including government purchases of commodities and services, private consumption

expenditure, net exports, and investment expenditure. There are four major types of GDP,

namely potential GDP, actual GDP, nominal GDP, and real GDP. Economics, investors,

policymakers, and other stakeholders use the GDP to assess a country's economy's performance

and overall health. An increase in GDP is an indicator of economic strength, while negative

GDP figures imply economic weakness and poor performance. Governments, investors, and

other stakeholders look at the GDP growth or decline to make vital decisions such as budgeting

and economic planning, borrowing, wages and salaries among others.

Major Article Summary

Brinkman, R. L., & Brinkman, J. E. (2011). GDP as a measure of progress and human

development: a process of conceptual evolution. Journal of Economic Issues, 45(2), 447-456.

This article looks into the role of GDP as one of the fundamental measures of progress

and human development. The authors analyze the conceptual evolution of GDP and how in

recent times, its analytical purview has come under increased scrutiny in the scholarly world.

According to the article, evidence has indicated that while the American economy and the global

economy, in general, are experiencing GDP growth but the basic human needs are not being

fulfilled.

Feldstein, M. (2017). Underestimating the real growth of GDP, personal income, and

productivity. Journal of Economic Perspectives, 31(2), 145-64.

This article investigates the role of real growth of GDP, personal income, and

productivity as some of the indicators or measures of well-being. The author looks into the use of

personal income as a measure of well-being and how governments measure growth in the quality

of goods and services. He concludes some of the indicators are flawed; hence, economists

should consider such limits in adjusting public policies accordingly.

Ivković, A. F. (2016). Limitations of the GDP as a measure of progress and well-being.

Ekonomski Vjesnik/Econviews-Review of Contemporary Business, Entrepreneurship, and

Economic Issues, 29(1), 257-272.

This article looks into the inadequacy of GDP as a universal measure of progress and

well-being. The author argues that GDP does not reflect anything more than productivity within

the economy. Various limitations of GDP that are not sufficiently covered in general

public/academic literature have been critically discussed. Ivkovic states that GDP was never

designed to be anything more than a monetary measure, hence the need to use the concept to be

reevaluated.

Brueckner, M., & Lederman, D. (2017). Inequality and GDP per capita: The role of initial

income. World Bank.

This article investigates how inequality in transitional growth differs depending on the

initial incomes and average wealth of different countries. The authors report that evidence

indicates that the relationship between inequality and GDP per capita continues to decrease in

nations' initial incomes. While greater income inequalities boost transitional growth in low-

income countries, inequalities negatively impact transitional growth in high-income countries.

This relationship between inequality and GDP is vital in economic policymaking.

Tabassum, A., & Majeed, M. T. (2018). Economic growth and income inequality relationship:

role of credit market imperfection. The Pakistan Development Review, 727-743.

This article examines the empirical relationship between income inequalities and

economic growth at the aggregate as well as regional level. The authors employ a more

comparable data set for 69 low-income economies over the period 1965-2003. The study

establishes that the relationship between growth and income inequalities is positive in the short

run. Income inequalities reduce economic growth in the long run. The authors also found that

more physical and human capital investment coupled with trade openness and higher government

expenditure can statistically influence economic growth and reduces inequality.

Discussion

The five articles discussed above are very relevant to the content of this week's assigned

module. These articles critically loon into GDP as a measure of well-being and economic

performance of a country. Reading these articles has significantly expanded my understanding

of GDP and its strengths and weaknesses as a measure of economic growth. I have gained more

in-depth understanding of some of the weaknesses of GDP as a measure of well-being and

standards of living of a country. I have learned that, as argued by Ivkovic (2016), GDP was not

designed to be anything more than a monetary measure. For this reason, I believe GDP's

application in economic settings should be critically reevaluated with these weaknesses in mind.

Additionally, these articles help me achieve this course's learning objectives by addressing how

GDP influences economic policymaking. This has enriched my understanding of some of the

notable intricacies involved in measuring the economic well-being of a country.

The five articles are closely related in the sense that they all address some of the key

concerns/criticism of GDP as a measure of society's economic well-being. Brinkman &

Brinkman's argument that GDP growth rate does not necessarily imply that basic human needs

are being fulfilled is echoed by Ivković (2016), who states that GDP "was never designed to be

more than just a monetary measure and, besides that, it has a lot of limitations and weaknesses

that are not sufficiently presented to the general public or in academic papers." Brueckner &

Lederman (2017) contend that the relationship between economic inequalities and GDP per

capita continues to significantly decrease in countries' initial incomes. This is supported by

Tabassum & Majeed (2018), who argues that "while in the short run the relationship between

growth and income inequality might be positive but over time more income inequalities reduce

economic growth." The five articles are coherent and close-related because they address the same

economic issue.

References

Aitken, A. (2019). Measuring welfare beyond GDP.National Institute Economic

Review,249(1), R3-R16.

Sharma, S., & Vansiya, Y. (2018). Measuring Well Being: Evolution from GDP to

Sustainability.International Journal of Movement Education and Social Science,7(2), 171-177.

Tynan, N. (2016). Coyle, Diane. GDP: A Brief but Affectionate History. Princeton:

Princeton University Press, 2014.Essays in Economic & Business History,34(1), 277-280.

Peer Responses:

Additionally, you will reply to a minimum of 3 other classmates’ threads. Thus,

you will have submit substantive written responses to a minimum of 3 other

classmates’ threads.

DiscussionBoardForum2Part2

GaddielRobertAcquaah

SchoolofBusiness,LibertyUniversity

Dr.ObinnaOlowu



AuthorNote

GaddielRobertAcquaah.

Ihavenoknownconflicttodisclose.

CorrespondenceconcerningthisarticleshouldbeaddressedtoGaddielR.Acquaah

KEYTERMSANDWHYYOUAREINTERESTEDINIT

ThekeytermIselectedwas“protectionism”ininternationaltrade.Ichosethistermbasedonthe

expansionofinternationaltradeandinvestmentintoday’sglobaleconomy.Recentgrowthinforeign

directinvestmentandfreetradezonehasbroughttheneedforgovernmenttoimposerestrictionsand

interventionstoslowdowntheinfluxofsomegoodsandservicestopreventforeigninvestorsor

productsfromtakingoverthelocalmarket.Also,havingreadmacroeconomicsandeconomicgrowth

anddevelopmentcoursesduringmyundergraduateprogram,thetermprotectionisminthecontextof

economicsreferstopoliciesoractionsusedtoprotectbusinessesormanageeconomicsystems.

Additionally,Ifoundoutthatmostprotectionismactionscanbeabloominggloryoratotalfailure.

EXPLANATIONOFTHEKEYTERMS

Thetermprotectionismininternationaltradeisaneconomicpolicyoractionimposedbya

protectionisttorestricttradewithothercountries(Satterlee,2014).Protectionistreferstoanadvocate,

government,ororganizationregulatingtradeoranyhumanrelationswithinthesamecountryor

betweentwocountries(Chen&Hwang,2006).Inthiscontext,emphasiswillbebasedoneconomic

protectionist.Ascountriesbegantoopentheirdoorsforinternationaltrade,tradevulnerabilitiesand

riskbecameapparent.Therefore,protectionistneedstoprotectdomesticbusinessandforeign

ownershipofdomesticassetsthroughtariffs,quotas,embargoes,localcontextrequirements

administratedelaysandcurrencycontrols.Thethreemostcommonformsofprotectionismaretariffs,

quotas,andembargoes.Atariffisaformoftaxprotectionimposedonsomeimportedgoodsto

generaterevenueandprovideacompetitiveadvantagefordomesticbusiness(Satterlee,2014).Chen

andHwang(2006)definedquotaasimportrestrictiontolimitimportedgoods’quantitytoencourage

domesticsubstitutes.Matschke(2003)explainedembargoesastradesanctionsorbanagainstcountries

andforeigncorporationsthatdonotfollowtraderegulationsorstandards.

MAJORARTICLESUMMARY

ThearticleTradeprotectionism:reasonandoutcomes(Abboushi,2010)analyzetradebenefits

anddrawbacksofprotectionismpolicies.AccordingtoAbboushi(2010),internationaltradegenerates

revenue,increasemarketaudience,andpromotetrustbetweencountries.However,thegovernmentas

anadvocatemayintervenetoprotectitsdomesticmarkets,assets,employment,andbalanceof

paymentsdeficits.

OneofAbboushi’sarticle’smajorpointswasthatnationsuseprotectionismtocontroltrade

activities.Firstly,thegovernmentmayimposehightaxesonimportstoincreasethepriceofimports

relativetodomesticpricesforsameorsubstitutesproducts.Thisformofprotectionistodiscourage

consumersfromconsumingforeignproducts.Secondly,newdomesticindustriesmaynotbenefitfrom

economiesofscalereapedbymultinationalcorporationswithfivetotenyearsofbusinessoperations;

thus,achievingeconomiesofscalecompaniescanlowercostbyincreasingproduction.Therefore,the

governmentusesquotastoreducethenumberofimportsinthecountry.Inthearticle,economicsof

scalewasreferredtoascostadvantagegainedbycompanieswhenproductionbecomesefficient.

Finally,economicprotectionistscanapplysanctionsagainstillegalgoods,drugs,practicesandforce

alliestosupportcommongoalsandobjectives.

Thearticlealsodiscussedprotectionismasameanstocontrolforeigndirectinvestment.Foreign

directinvestmentinvolvesbuyingphysicalassetsorownershipofafirminanothercountry(Abboushi,

2010).AccordingtoAbboushi(2010),thethresholdforeigndirectinvestmentintheUnitedStatesis

10%.Additionally,economicprotectionistimposetheserestrictionstoprotectworkersandforeign

involvementintheireconomy.Asuccessfulforeigndirectinvestmentcanraiseemploymentand

standardoflivinginthehostcountry.Incontrast,someunsuccessfulonescanenduprelocatingor

shuttingdown,especiallyinadevelopedcountryorhighlycompetitivemarket.

Abboushi’sarticlealsoemphasizedthateconomicprotectionistsapplyeconomicpoliciesto

correctthebalanceofpaymentdeficits.Atradedeficitoccurswhenimportsoutweighexports.Also,the

balanceofpaymentisthetotaloutflowsandinflowsofagivencountry.Therefore,whenthetrade

deficitpersists,thegovernmentbeginstorestrictimports.

Thearticleconcludedthatotherfactorssuchaslackoftradeagreementsandhighdomesticgoods

priceswouldcauseaninevitabledemandforforeignproductsthatarerelativelycheaper.

DISCUSSION

InAbboushi’s(2010)article,therecentsurgeintradeprotectionismaroundtheglobehasledtothe

establishmentofaregulatorybodysuchastheWorldTradeOrganisation(WTO)andtheGeneral

AgreementonTariffsandTrade(GATT).Oneoftheseorganizations’keyresponsibilitiesistoencourage

tradingpartnerstopracticefairtradeandavoidexcessiveimportdutiesthathindertheirconsumers

frombenefitingfromvariousproductsfromdifferentcountries(Cheng&Hawng,2006).Forexample,

timberproductionbecameexpensivewhentraderestrictionsgrewbetweentheUnitedStatesand

Canadaduetoreciprocalprotectionontimberlogging(Johnston&Parajuli,2017).Thepurposeofusing

reciprocityistopressuretheforeigngovernmenttoreduceorremoveitsprotectionmeasures.Also,the

escalationofreciprocaltraderestrictionswillaffectbotheconomies,defeatingthekeypurposeof

bilateraltradeamongnations(Fajgelbaumetal.,2020).

Fouda(2012)alsoindicatedthattheunevendistributionofnaturalresourcesworldwidedoesnotgive

roomprotectionism.Forexample,thefertilesoilandclimateinBrazilandColumbiahavemadeboth

countriestheworld-leadingexporterofcoffeebeans.Incontrast,theUnitedStatesisamajorconsumer

ofcoffee,yetitcan’tgrowcoffeeduetoitsunfavorableclimate.Inthiscase,iftheUnitedStates

practicesprotectionism,suchasapplytariffsandquotasoncoffeebeans,thesupplyofcoffeebeanswill

belimited,andthepricewillincrease.Therefore,ifacountryconsumesspecificproductsmorethanthe

countryproducesinternally,ithastoeliminateprotectionsandimportmoreproductsfromother

countries.

Asmultinationalcompaniesbecomeaffluent,theyexpandintoanotherforeignmarket(Ufimtseva,

2020).AccordingtoUfimtseva(2020),thepurposeofforeigndirectinvestmentistoincreasebrand

awareness,toseekoutcheaplaborormaterialcost,andtogeneraterevenueontheirinvestmentfrom

anothercountry.Foreigndirectinvestmentthresholddependsonfourfactors:thetypeoftheeconomy,

domesticmarket,externalthreats,anddomesticindustrybacklash.Lastly,somecountriesstillmaintain

aforeigndirectinvestmentthresholdtoattractforeigninvestorsinsomeeconomicsectors.



REFERENCES

Abboushi,S.(2010).Tradeprotectionism:reasonsandoutcomes.

InternationalBusinessJournalincorporatingJournalofGlobalCompetitiveness,20(5),384-

394.https://doi.org/10.1108/10595421011080760

Chen,H.Y.,&Hwang,H.(2006).Tariffsversusquotasundermarketprice

uncertainty.ReviewofWorldEconomics,142(1),181–194.https://doi.org/10.1007/102900060062

Fajgelbaum,P.D.,Goldberg,P.K.,Kennedy,P.J.,&Khandelwal,A.K.(2020).Thereturnto

protectionism.TheQuarterlyJournalofEconomics,135(1)1-55,https://doi.org/10.1093/qje/qjz036

Fouda,R.A.N.(2012).“Protectionismandfreetrade:acountry‘sgloryor

doom.InternationalJournalofTrade,EconomicsandFinancevol.3,no.5,pp.351-355,

2012http://doi.org10.7763/2012226

Johnston,C.M.,&Parajuli,R.(2017).What’snextintheUS-Canadasoftwoodlumberdispute?

Aneconomicanalysisofrestrictivetradepolicymeasures.ForestPolicyandEconomics,85,135-

146.https://doi.org/10.1016/201709011

Matschke,X.(2003).Tariffandquotaequivalenceinthepresenceofasymmetric

information.JournalofInternationalEconomics,61(1),209-223.https://doi.org/10.1016/S0022-

1996(03)00002-3

Satterlee,B.(2014).Crossbordercommerce:withbiblicalworldviewapplication(2ndedition.).

Raleigh,NorthCarolina:SI-CORP

Ufimtseva,A.(2020).Theriseofforeigndirectinvestmentregulationininvestment recipient‐

countries.GlobalPolicy,11(2),222-232.https://doi.org/10.1111/1758589912788





Discussion Board 2 – Part 2

Josh Law

School of Business,Liberty University



Author Note

Josh Law

I have no known conflict of interest to disclose.

Correspondence concerning this article should be addressed to Josh Law.



Discussion Board 1 – Part 2

Key Termand Why You Are Interested in It

I chose to research the term “IT network risk” because I believe it represents a real,

frequently downplayed, threat faced by government and business entities across the globe.

IT network risks are not only dangers that impact the survival of a business, regardless of

size, but may ultimately impact America’s national security. As the use of the internet and

technology increases in almost every segment of our lives, it is crucial that we deepen our

understanding of IT network risks and learn ways to mitigate damages from these risks in

our business and personal lives. In addition, this term is relevant in our world today during

the COVID-19 pandemic as governments and businesses around the world race to find and

deliver vaccines that require research and development along with logistical delivery tools

that are rooted in IT network.

Explanation of the Key Term

IT network risk is one of the most dangerous problems businesses encounter. This

term includes crucial aspects of operating and maintaining a global business containing

facets of cybersecurity and the resulting breakdown of crucial IT infrastructure (Satterlee,

2018, p. 87). Cybersecurity deals with the protection of IT resources to keep unauthorized

users from accessing business data. Cybersecurity aims to prevent data hacking and

breaches. In 2019, these activities cost businesses around the world over $2 trillion. Many

businesses mistakenly believe that IT network risks and cybersecurity efforts are exclusively

their IT department’s responsibility, but everyone throughout an organization has a role in

keeping their business data and IT infrastructure secure (Ponnambalam, 2020).



Major Article Summary

James Lockett in the articleWhat Cybersecurity Means for Global Tradeprovides a detailed overview

of risks businesses confront throughout their IT networks and the role network protection will play in the future of

international commerce. This protection comes in the form of cybersecurity that incorporates topics from

surveillance, theft, data privacy and protection to international trade, investment, and criminal prosecution. Lockett

believes that the internet and technology are fundamental tools that can be used to cultivate global trade, more so

than any governmental policy. In his opinion, technology changes much faster than trade regulations can adapt to

make a difference.

He also describes how IT network risks can go beyond an individual business and reduce an entire

country’s national security efforts. Cyber theft of trade secrets and protected intellectual property rights are some of

the risks facing IT networks. He believes that state-sponsored cyber crimes must be addressed through intellectual

property protections around the world.

1. Comprehensive Cybersecurity Challenges:

Lockett underscores that businesses operating in the digital age face multifaceted cybersecurity challenges. These

challenges encompass a wide range of issues, including surveillance, data theft, data privacy, and protection.

The interconnected nature of global trade and the reliance on IT networks make businesses vulnerable to a variety of

cyber threats. These threats can have far-reaching consequences, affecting not only individual companies but also

entire industries and economies.

2. The Role of Cybersecurity in International Trade:

The article emphasizes that cybersecurity is not just a matter of protecting business interests; it is also intertwined

with broader issues related to international trade, investment, and criminal prosecution.

Effective cybersecurity measures are essential for building trust and confidence in international trade. Businesses,

investors, and consumers must feel secure in conducting transactions and sharing data across borders.

3. Technology as a Driver of Global Trade:

Lockett's perspective highlights the pivotal role of technology in facilitating and advancing global trade. He argues

that the internet and technology are fundamental tools that can catalyze international commerce more rapidly than

government policies can adapt.

Technology enables businesses to access global markets, engage with customers worldwide, and streamline supply

chains. The rapid evolution of technology continuously reshapes the global trade landscape.

4. National Security Implications:

The article underscores that the consequences of IT network risks can extend beyond individual businesses. In some

cases, cyber threats can compromise a country's national security efforts.

Cyber theft of trade secrets, intellectual property rights, and sensitive government data can jeopardize a nation's

economic competitiveness and security. This highlights the interconnectedness of economic and national security

concerns in the digital age.

5. Addressing State-Sponsored Cyber Crimes:

Lockett makes a compelling point about the importance of addressing state-sponsored cybercrimes. Nation-states

engaging in cyber espionage and intellectual property theft pose significant challenges to global trade and security.

The call for intellectual property protections worldwide reflects the need for coordinated international efforts to

combat cyber threats originating from state actors.

6. Speed of Technological Change:

An essential takeaway from the article is the observation that technology evolves at a rapid pace. This rapid change

can outstrip the ability of trade regulations and policies to keep up.

Policymakers and businesses must adapt quickly to emerging technologies and their associated risks. This requires

agility and a proactive approach to cybersecurity and international trade.

In summary, James Lockett's article underscores the critical role of cybersecurity in the future of global trade. It

highlights the complex and interconnected nature of cybersecurity challenges, emphasizing the need for businesses,

governments, and international organizations to work collaboratively to address these challenges effectively.

Additionally, the article emphasizes the pivotal role of technology in shaping the landscape of international

commerce and the urgency of adapting to the evolving digital environment.

7. Interplay Between Regulation and Technology:

Lockett's observation that technology evolves faster than trade regulations can adapt highlights the ongoing struggle

to strike a balance between fostering innovation and ensuring regulatory compliance.

Policymakers face the challenge of crafting regulations that can keep pace with rapidly evolving technologies

without stifling the growth and dynamism of the digital economy.

8. Trust and Reputation:

Trust is a fundamental element of global trade, and cybersecurity plays a central role in building and maintaining

trust. Businesses that prioritize robust cybersecurity practices can enhance their reputation as reliable and secure

partners in international trade.

Conversely, cybersecurity breaches can severely damage a company's reputation and erode trust, potentially leading

to a loss of customers and business partners.

9. Global Collaboration:

The global nature of cyber threats calls for international collaboration and cooperation. Businesses, governments,

and organizations must work together to share threat intelligence, best practices, and mitigation strategies.

International agreements and alliances focused on cybersecurity, such as information-sharing partnerships and

cybersecurity treaties, can help address cross-border threats effectively.

10. Economic Impact:

Cybersecurity incidents can have significant economic repercussions, including financial losses, decreased investor

confidence, and increased business costs associated with mitigating and recovering from breaches.

These economic impacts can ripple through supply chains and have broader consequences for regional and global

economies.

11. Intellectual Property Protection:

The protection of intellectual property rights is a critical component of cybersecurity in global trade. Businesses

must safeguard their proprietary information, and nations must establish legal frameworks and enforcement

mechanisms to deter cyber theft of intellectual property.

Strong intellectual property protections can incentivize innovation and promote economic growth by ensuring that

innovators reap the rewards of their efforts.

12. Cybersecurity as a Competitive Advantage:

Businesses that excel in cybersecurity can gain a competitive advantage in global markets. Demonstrating a

commitment to data protection and customer privacy can be a selling point that attracts international clients.

Moreover, cybersecurity practices can be a differentiator in industries where trust and security are paramount, such

as finance, healthcare, and critical infrastructure.

13. Cyber Insurance:

The growing importance of cybersecurity has led to the emergence of cyber insurance as a vital risk management

tool for businesses engaged in global trade. These policies can help mitigate the financial impact of cyber incidents.

However, the effectiveness of cyber insurance relies on businesses implementing strong cybersecurity measures, as

insurers often require evidence of sound security practices.

In conclusion, James Lockett's insights emphasize the interconnectedness of cybersecurity, technology, and global

trade. They underscore the need for a holistic and proactive approach to cybersecurity that spans industries, borders,

and policy domains. In an era of rapid technological advancement, cybersecurity remains a critical enabler and

protector of international commerce.

Lockett provides several examples of the impact of cybersecurity measures and global trade between the

United States and China. He details the arguments made by the United States against Chinese sponsored cyber

intelligence and theft events after 2010. Lockett also states the U.S. believes that these activities breach the World

Trade Organization’s Agreement on Trade-Related Aspects of Intellectual Property Rights.

One example Lockett provides involves United States Senators voting to block the sale of technology

equipment from a Chinese company to U.S. businesses because they were a supplier to the U.S. military in 2010.

Cybersecurity was also the focus of the U.S. House Permanent Select Committee on Intelligence in 2012 who

advised against the United States conducting business with Chinese network vendors. Ultimately, due to

cybersecurity concerns, this committee recommended the U.S. block any corporate takeovers from Chinese

telecommunications producers. These problems are not solely witnessed in the relationship between the United

States and China but are seen in the relationships between other nations throughout the world.

Discussion

The government and businesses of the United States face countless IT related dangers from international

intelligence services, and illicit activities coming from the private sector and criminals around the world. As time

progresses, more and more of these dangers come from cyberspace in attempts to disrupt the American economy

from the bottom up. These dangers are directly targeting the national security of the United States and cover trade

secrets, developments in technology, and intellectual property. Overall, these intelligences and theft activities greatly

harm future economic development in the U.S. Failure of the U.S. government and businesses to mitigate these

dangers will result in America faltering to global competition and ultimately lead to the decrease of our security

(“Economic Espionage”).

There are numerous options businesses must choose from when dealing with cybersecurity efforts. To

begin with, companies can encourage action from their trade representatives. Another method is to acquiesce and

stop selling in markets guilty of criminal cyber activities. Businesses also have the option of compromising and

adapting to new laws and regulations in the countries they conduct business in. If a business is unwilling to

compromise, they can choose to avoid certain markets (Madnick, 2019). 

An estimated forty-three percent of cyberattacks are directed at U.S. small businesses. Unfortunately, only

14% of these businesses are protected through cybersecurity measures. As businesses increase ecommerce and

global marketplace efforts, cybercrime has continued to become more prevalent and is now considered the type of

illicit activity that is fastest growing (Steinberg, 2019).

At the end of 2020, the United States experienced a cyber-attack against the Department of Treasury,

Homeland Security, numerous Fortune 500 companies, and U.S. computer networks. A group of Russian hackers

known as Cozy Bear are believed to have committed this attack on behalf of the Russian government. Initially, this

group hacked SolarWinds, an information technology business that boasts clients in government agencies and global

businesses around the world. By infecting these agencies and businesses with malware they embedded in software

updates, Cozy Bear could commit as much harm as possible before cybersecurity efforts were taken (Pane, 2020).





References

Economic Espionage. The National Counterintelligence and Security

Center.https://www.dni.gov/index.php/ncsc-what-we-do/ncsc-threat-assessments-

mission/ncsc-economic-espionage.

Lockett, J. (2015).What cybersecurity means for global trade.World Economic Forum.

https://www.weforum.org/agenda/2015/09/what-cybersecurity-means-for-global-trade/

Madnick, S., Johnson, S. & Huang, K. (2019).What Countries and Companies Can Do When Trade and

Cybersecurity Overlap.Harvard Business Review.https://hbr.org/2019/01/what-countries-and-

companies-can-do-when-trade-and-cybersecurity-overlap

Pane, J. D. (2020).Hack of U.S. Agencies, Fortune 500 Firms Highlights Need for Cybersecurity.The

Heritage Foundation.

https://www.heritage.org/cybersecurity/commentary/hack-us-agencies-fortune-500-

firms-highlights-need-cybersecurity

Ponnambalam, S. (2020).Cybersecurity for Global Trade and eCommerce.California International

Trade Center.https://cainternationaltrade.org/cybersecurity-global-trade-ecommerce/

Satterlee, B. (2018).Cross Border Commerce(3rd ed.). Synergistics International.

Steinberg, S. (2019).Cyberattacks now cost companies $200,000 on average, putting many out of

business.CNBC.https://www.cnbc.com/2019/10/13/cyberattacks-cost-small-companies-

200k-putting-many-out-of-business.html

===============================================================================

================================================================

Economic Development Incentives

Arianna S. Young

School of Business,Liberty University



Author Note

Arianna Young

I have no known conflict of interest to disclose.

Correspondence concerning this article should be addressed to Arianna

Young



Economic Development Incentives

The topic of “Economic Development Incentives” interests me because it is an

efficient way to bring jobs to a local economy, which would help the current

economic problem. In today’s economy, where unemployment is at an all-time high,

states being able to take their economies into their own hands is key. Making a county

or city more marketable for a firm to locate its business in, gives that entity capacity

to create new opportunities for its constituents.The incentives offered can also help

boost innovation across the country, which is necessary for the United States to

continue to compete globally.



EXPLANATION OF KEY TERM



Essentials relevant to understanding Economic Development Incentives (EDI) include

the reasons to incentivize business relocation and the different types of incentives

used to lure businesses. Hosting a large firm in a city is known to create jobs, revenue

and opportunities. This can vary depending on the size and industry of the firm.

Countries all the way down to cities have their own funds allocated specifically for

this. Often times, packages are put together and pitched to a firm known to be looking

for a place to set up shop. This is almost like bidding at an auction, with the city with

the most benefits winning the contract. These packages can include building grants,

tax breaks and land purchase assistance to name a few. Development Incentives are

also available to smaller firms, as in since cases they may be able to produce a more

long term and accelerated growth being that they are generally in the beginning stages

of development.





ARTICLE SUMMARY



The article “Striking a Balance: A National Assessment of Economic Development

Incentives” (Donegan et al, 2019) sets out to answer the questions of whether

incentives cause greater performance within a firm, which size firms offer the most

job growth and whether or not balancing incentives for recruitment and lo

Post 1

Hello, thank you for your informative post about protectionism. You have mentioned that the

various forms of protectionism are adopted for a variety of reasons. As you have rightly

mentioned, while some forms of protectionism help boost certain aspects of the economy, others

help discourage certain activities. I agree with you that some protectionist actions can yield post

results while others can turn out a total disaster. For this reason, I believe that governments

should be cautious when adopting quotas, tariffs, and other forms of protectionism. According to

Fajgelbaum et al. (2020), unplanned protectionism could lead to high unemployment rates and

eventual decrease of a country’s gross domestic product (GDP), hence governments should

conduct a thorough research about the unforeseen ripple effects that protectionist actions may

yield in the long run. The other notable point raised in your post is that economic protectionism

can impose sanctions against certain undesirable activities such as illegal goods and drugs

smuggling. Do you think the ongoing COVID-19 pandemic will affect protectionism globally?

Post 2

Hi, and thank you for your informative post. You have raised some very insightful points about

“IT network risk” as one of the key challenges facing many businesses and governments in the

21st Century. I fully agree with you that IT network risk could have far-reaching effects on

businesses and America’s national security. I believe with the proliferation of cyber terrorism,

businesses, governments, and other stakeholders should collaborate to fight cybercriminals. The

other important argument raised in your post is that everyone within an organization has the

responsibility of keeping their business data and IT infrastructure secure. This means

collaboration across all departments and functions across the organization and a proper

understanding of IT network risks. According to Hadlington (2018), training employees on

cybersecurity helps ensure they possess up-to-date know-how on recognizing and mitigating a

wide array of cyber-threats. Do you think organizations should prioritize cybersecurity training?

1. Human Factor in Cybersecurity:

People are often the weakest link in cybersecurity. Many cyber incidents, including data

breaches and phishing attacks, occur because employees lack awareness and fall victim to social

engineering tactics.

Cybersecurity training helps employees recognize potential threats, understand safe online

behavior, and be cautious about sharing sensitive information.

2. Evolving Threat Landscape:

The threat landscape is constantly evolving, with cybercriminals developing increasingly

sophisticated attack methods. Training ensures that employees are informed about the latest

threats and how to defend against them.

Training programs can cover a wide range of threats, including malware, ransomware, phishing,

insider threats, and more.

3. Regulatory Compliance:

Many industries and regions have specific cybersecurity regulations and compliance

requirements. Failure to comply with these regulations can result in legal penalties and

reputational damage.

Cybersecurity training helps employees understand these regulations and how their actions can

impact compliance.

4. Insider Threat Mitigation:

Insider threats, where employees intentionally or unintentionally compromise security, are a

significant concern. Training programs can address this by educating employees on security

policies and best practices.

Training can also help employees recognize signs of potential insider threats and report them

appropriately.

5. Risk Reduction:

Effective cybersecurity training can significantly reduce the risk of security incidents and data

breaches. Employees who are well-informed are less likely to engage in risky online behavior.

Reduced risks mean potential cost savings in terms of incident response, legal expenses, and

reputational damage control.

6. Organizational-wide Responsibility:

As you rightly pointed out, cybersecurity is not solely the responsibility of the IT department. It's

a collective responsibility that extends across all departments and functions within an

organization.

Training fosters a culture of cybersecurity awareness and responsibility, ensuring that every

employee understands their role in protecting the organization's data and IT infrastructure.

7. Incident Response Preparedness:

Training programs often include elements on incident response and what to do in the event of a

cybersecurity incident. This preparation can be crucial in minimizing the impact of an incident

and preventing its escalation.

8. Continuous Learning:

Cybersecurity is a dynamic field, with new threats and vulnerabilities emerging regularly.

Cybersecurity training should be an ongoing process to keep employees informed about evolving

risks.

9. Competitive Advantage:

Organizations that invest in robust cybersecurity training can use their commitment to security as

a competitive advantage. Customers and partners often prioritize working with organizations that

take cybersecurity seriously.

10. Reputation Management:

A cybersecurity incident can damage an organization's reputation and erode customer trust.

Training helps employees prevent incidents and respond effectively if one occurs, safeguarding

the organization's reputation.

In conclusion, cybersecurity training is a fundamental and proactive measure that organizations

should prioritize to protect against a wide range of cyber threats. It empowers employees to

recognize and respond to threats, fosters a culture of security, and reduces the overall risk profile

of the organization. As the cyber threat landscape continues to evolve, ongoing training is

essential to stay ahead of emerging risks and vulnerabilities.

Post 3

Hi, I have enjoyed your interesting and informative post. You have discussed some very

fundamental issues about economic development incentives and how they can contribute to

economic development. You have mentioned that making a country or city more marketable

attracts more investment, which helps to improve the quality of life of the constituents/citizens.

This is a great point because as more businesses establish operations in the country, more

employment opportunities are created while the residents can benefit from easier access to goods

and services. According to Peters & Fisher (2014), economic development incentives are

essential for the U.S as the country seeks to increase its competitiveness in the global market.

Additionally, you have stated that balancing incentives for recruitment and local

entrepreneurship makes more efficient use of tax dollars. This is a great observation that I

believe should be taken into account when formulating economic development incentives. Do

you think the ongoing COVID-19 pandemic will influence economic development incentives?

. Focus on Resilience and Recovery:

The pandemic exposed vulnerabilities in global supply chains and economic systems. In

response, there has been a heightened focus on building economic resilience and fostering

recovery. Economic development incentives are being tailored to support industries and

businesses that can contribute to economic recovery and resilience.

2. Shift in Industry Priorities:

The pandemic accelerated trends in remote work, e-commerce, healthcare, and technology

adoption. Economic development incentives are being directed toward industries and sectors that

have demonstrated resilience or growth during the pandemic.

Investments in digital infrastructure, telemedicine, and e-commerce logistics are examples of

how economic development strategies are adapting to the new normal.

3. Support for Small Businesses:

Small businesses have been disproportionately affected by the pandemic. Many economic

development incentives are now aimed at providing support to local entrepreneurs, startups, and

small businesses.

Initiatives such as grants, low-interest loans, and training programs are being deployed to help

small businesses weather the economic challenges brought about by the pandemic.

4. Health and Bioscience Investments:

The pandemic underscored the importance of health and bioscience sectors. Economic

development incentives are being used to attract pharmaceutical companies, biotech startups, and

medical research institutions.

Regions are investing in life sciences hubs and research clusters to strengthen their healthcare

infrastructure and readiness for future health crises.

5. Remote Work and Digital Nomadism:

With remote work becoming more prevalent, some regions are offering incentives to attract

remote workers and digital nomads. These incentives may include tax breaks, co-working

spaces, and improved digital infrastructure.

By attracting remote workers, regions can boost their local economies and increase demand for

housing, services, and amenities.

6. Sustainability and Green Initiatives:

The pandemic has highlighted the importance of environmental sustainability and resilience.

Economic development incentives are increasingly linked to green initiatives, renewable energy

projects, and sustainable urban planning.

Governments are investing in green infrastructure and clean technology to create jobs while

addressing environmental concerns.

7. Rethinking Incentive Policies:

The economic challenges posed by the pandemic have prompted some governments to rethink

their incentive policies. They are evaluating the effectiveness of existing programs and

considering more targeted and outcome-based approaches.

Policymakers are also exploring ways to strike a balance between competitiveness and fiscal

responsibility, as resources have become scarcer during the pandemic.

In summary, the COVID-19 pandemic has reshaped economic development strategies and

incentives, with a renewed emphasis on resilience, recovery, and adaptation to emerging trends.

The pandemic's long-term impacts on work, technology, healthcare, and sustainability will

continue to influence how regions approach economic development incentives in the post-

pandemic world. Flexibility and the ability to respond to evolving economic realities will be key

in ensuring the effectiveness of these incentives.

8. Healthcare and Life Sciences Investment:

The pandemic has highlighted the critical importance of healthcare systems and medical

research. Economic development incentives are being used to attract investments in healthcare

infrastructure, pharmaceutical manufacturing, and medical research facilities.

Governments are looking to enhance their healthcare capacities to better respond to future health

crises, and these investments can create jobs and drive economic growth.

9. Supply Chain Diversification:

The disruptions caused by the pandemic in global supply chains have led to a reconsideration of

supply chain strategies. Economic development incentives are being used to promote supply

chain diversification and resilience.

This includes incentives to encourage the localization or regionalization of supply chains,

reducing dependence on a single source or region for critical goods.

10. Digitalization and Remote Services:

The pandemic accelerated the digitalization of various industries, including education,

entertainment, and telehealth. Economic development incentives are being directed towards

expanding digital infrastructure and supporting the growth of digital service providers.

Investments in high-speed internet access and digital literacy programs are seen as essential for

promoting economic resilience and access to remote services.

11. Workforce Development and Retraining:

With changes in the job market due to the pandemic, economic development incentives are being

used to fund workforce development and retraining programs.

These programs aim to equip workers with the skills needed for evolving industries and help

those who have lost jobs due to the pandemic transition into new roles.

12. Regional Equity and Inclusion:

The pandemic has underscored disparities in access to healthcare, education, and economic

opportunities. Economic development incentives are increasingly being channeled to address

these disparities and promote regional equity.

Investments in underserved communities, affordable housing, and inclusive economic

development are becoming key components of incentive programs.

13. Cybersecurity and Data Privacy:

As remote work and digital transactions become more prevalent, economic development

incentives are being used to bolster cybersecurity measures. Investments in cybersecurity

infrastructure and training are seen as vital to protect businesses and consumers.

Data privacy regulations and compliance measures are also being incorporated into economic

development strategies to enhance trust in digital transactions.

14. Reevaluation of Fiscal Policies:

The economic challenges posed by the pandemic have led to a reevaluation of fiscal policies and

budget priorities. Some governments are reassessing tax incentives and subsidies to ensure they

align with broader economic recovery goals.

Policymakers are seeking a balance between supporting businesses and managing budget deficits

resulting from the pandemic's economic impact.

In conclusion, the COVID-19 pandemic has prompted a rethinking of economic development

incentives to address the changing economic landscape and emerging challenges. The pandemic

has accelerated trends in digitalization, healthcare, supply chain resilience, and workforce

adaptation, all of which are influencing the design and allocation of economic development

incentives. Flexibility, adaptability, and a focus on long-term resilience are central themes in

shaping economic development strategies in the post-pandemic era.

15. Remote Work Policies:

With remote work becoming a more permanent fixture in many industries, economic

development incentives are being tailored to attract companies that support remote work and

digital infrastructure.

Regions are considering incentives like tax breaks for companies that invest in remote work

technologies, flexible workspace solutions, and digital connectivity.

16. Tourism and Hospitality Recovery:

The tourism and hospitality industries have been severely impacted by the pandemic. Economic

development incentives are being utilized to support the recovery of these sectors.

Incentives may include marketing campaigns to attract tourists, financial support for hotels and

restaurants, and infrastructure improvements in tourist destinations.

17. Public Health and Emergency Preparedness:

The pandemic has highlighted the importance of public health infrastructure and emergency

preparedness. Economic development incentives are being directed towards investments in

healthcare facilities, medical research, and pandemic response capabilities.

Communities are seeking to strengthen their resilience to future health crises through these

incentives.

18. Sustainable Practices:

Sustainability has gained prominence as a key consideration in economic development.

Incentives are increasingly focused on supporting businesses and projects that adopt

environmentally sustainable practices.

Investments in renewable energy, green building projects, and sustainable agriculture are being

incentivized to promote long-term environmental and economic resilience.

19. Digital Education and Skills Development:

The shift to remote learning during the pandemic has highlighted the importance of digital

education and skills development. Economic development incentives are being used to foster

educational technology innovation and improve access to digital learning resources.

These incentives aim to ensure that students of all ages have the skills and tools needed for the

digital economy.

20. Public-Private Partnerships (PPPs):

The economic challenges posed by the pandemic have led to increased collaboration between

governments and private sector entities. Economic development incentives may involve PPPs to

fund infrastructure projects, technology initiatives, and healthcare investments.

These partnerships leverage resources and expertise to drive economic recovery and growth.

21. Crisis-Resilient Infrastructure:

Incentives are being directed towards the development of crisis-resilient infrastructure, such as

disaster-resistant buildings, flood control systems, and emergency response facilities.

Communities are recognizing the need to be better prepared for natural disasters and other crises

that can disrupt economic activities.

22. Digital Transformation of Government Services:

Governments are accelerating the digital transformation of public services to ensure they remain

accessible during pandemics and other emergencies. Economic development incentives support

the development of e-government solutions and digital service delivery.

Investments in digital government infrastructure can enhance the efficiency of public services

and support economic growth.

In conclusion, the COVID-19 pandemic has brought about a shift in economic development

priorities, with a focus on resilience, sustainability, and adaptability. Economic development

incentives are being used to address the immediate challenges posed by the pandemic while

laying the groundwork for long-term economic recovery and growth.

References

Fajgelbaum, P. D., Goldberg, P. K., Kennedy, P. J., & Khandelwal, A. K. (2020). The return to

protectionism. The Quarterly Journal of Economics, 135(1), 1-55.

Hadlington, L. J. (2018). Employees attitudes towards cyber security and risky online

behaviours: an empirical assessment in the United Kingdom.

Peters, A., & Fisher, P. (2014). The failures of economic development incentives. Journal of the

American Planning Association, 70(1), 27-37.

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